Question

The compound interest on a certain sum of money at $5\%$ per annum for two years is Rs.246. Calculate the simple interest on the same sum for three years at $6\%$ per annum.

• A. Rs.430
• B. Rs.432
• C. Rs.442
• D. Rs.452

Answer 1

The correct option is B

Rs.432

Given:

C.I = Rs.246

We know that

$C.I=P[{(1+\frac{r}{100})}^n-1],weget$

$246=P[{(1+\frac{5}{100})}^2-1]$

$246=P[\left(\frac{21}{20}\right)\times \left(\frac{21}{20}\right)-1]=P\times \left(\frac{41}{400}\right)$

$P=\frac{246\times 400}{41}=Rs.2400$

Now, P = Rs.2400, r = $6\%$ p.a, t = 3 years

$UsingS.I=\frac{P\times R\times T}{100}.S.I=\frac{2400\times 6\times 3}{100}=Rs.432$